Following a record-breaking first half of the year, Vietnam’s film industry entered the second half of 2025 with strong momentum and continued expansion. According to a report released in early 2026 by CGV Vietnam ¹ —the country’s largest cinema chain—total box office revenue for 2025 reached VND 5,593 billion, marking a 24% increase compared to the previous year. Of this, Vietnamese films accounted for approximately VND 3,400 billion, representing a localization rate of approximately 62% based on full-year estimates. This indicates a strong preference for domestic films among audiences.

It is worth noting, however, that the second half of the year generated approximately VND 2,576 billion, lower than the VND 3,017 billion recorded in the first half (based on Box Office Vietnam). This imbalance is primarily driven by seasonal factors. In Vietnam, the first half of the year includes the two most significant holiday periods, Lunar New Year (Tet) and the April 30–May 1 holiday, which traditionally represent peak box office periods. As a result, it is typical for H1 to outperform H2.

The strong performance of local productions also played a crucial role in driving overall cinema attendance, with more than 70 million tickets sold, an increase of 29% year-on-year. These figures confirm Vietnam’s position as one of the fastest-growing theatrical markets in Asia and highlight the central role of domestic content in sustaining that growth.

One of the most significant trends in the three years following the COVID-19 pandemic has been the near-total dominance of domestic films at the box office, particularly evident in H2 2025. Although market share slightly adjusted compared to the first half of the year, Vietnamese films still accounted for approximately 65% of total revenue in H2 2025, based on consolidated estimates from multiple sources. This reflects a fundamental shift in audience behavior, from long-standing dependence on Hollywood blockbusters to a preference for culturally resonant, locally grounded storytelling.

A major highlight of H2 2025 was the return of state-backed productions, particularly large-scale historical and war films inspired by real events. Two major projects—Red Rain and Hijacked—achieved remarkable commercial success. Red Rain set a new all-time record for Vietnamese cinema, grossing VND 714 billion with more than 8 million admissions, surpassing Mai by Trấn Thành to become the highest-grossing Vietnamese film of all time. Meanwhile, Hijacked exceeded VND 250 billion, ranking among the top three highest-grossing films of the year. Together with the earlier release Tunnel: Sun in the Dark (April 2025), which earned around VND 170 billion, these films signal a renewed governmental effort to invest in historically and culturally significant narratives after years of a predominantly private-sector-driven market.

Despite these achievements, the industry’s growth remains uneven. The box office continues to be driven by a relatively small group of established filmmakers and commercially proven genres such as comedy, family drama, and horror. Structural weaknesses persist, including limited genre diversity, inconsistent script quality, and the marginalization of independent cinema.

Notably, more than 50% of films released in 2025 failed commercially. The box office landscape is increasingly polarized, with a handful of films generating hundreds of billions of VND while many others earn less than VND 1 billion, despite average production budgets ranging from VND 15–20 billion per film. This disparity underscores the high-risk nature of the market.

At an industry level, sentiment can best be described as “optimistic yet cautious.” Producers and distributors are willing to expand investment to capitalize on a growing domestic audience, but remain wary of rising production costs and the long-term sustainability of the current growth model.

Overall, Vietnam’s film industry in H2 2025 presents a paradox: a rapidly expanding market that is commercially vibrant, yet structurally imbalanced and still limited in artistic depth and diversity.

In the second half of 2025, approximately 150 films were released in Vietnamese cinemas, including around 30 domestic productions. While local films represented only a fraction of total releases, they continued to dominate box office revenue, reinforcing the growing strength of domestic production within the national film ecosystem.

Commercial genres remained the primary drivers of production. Comedy, romance, and family-oriented films continued to perform strongly, while horror emerged as one of the most reliable and scalable box office formulas. With relatively low production costs and high returns, horror films—especially those drawing on folk beliefs, spiritual traditions, and indigenous cultural elements—have become a defining feature of the Vietnamese market.

However, this trend also raises concerns about creative stagnation. Increasing repetition in narrative structures, themes, and stylistic approaches suggests a risk of market saturation in the near future, particularly if filmmakers continue to prioritize formulaic success over innovation.

Another defining characteristic of the production landscape is the growing dominance of “director-driven brands.” Filmmakers such as Trấn Thành, Lý Hải, and Victor Vũ function not only as creative leaders but also as commercial anchors. Their names alone can secure financing, attract audiences, and guarantee extensive screen allocation. This reflects a production ecosystem in which individual reputation often outweighs the institutional power of studios.

At the same time, the return of state-funded productions marks a notable shift. Films such as Red Rain and Hijacked demonstrate the government’s renewed commitment to large-scale, historically themed cinema. These projects, with their significant budgets and strong box office performance, introduce a new dynamic into a market that has been largely dominated by private investment in recent years.

In terms of infrastructure, Vietnam’s film industry has made steady progress. The growth of private studios, post-production houses, and visual effects companies has improved overall production capacity. Nevertheless, the scale of production remains modest compared to regional peers, particularly in terms of budgets and technical sophistication.

A persistent challenge is the shortage of skilled professionals, especially in screenwriting and high-end technical fields such as VFX and sound design. This talent gap continues to limit both the quality and diversity of Vietnamese films.

Government policies—including the revised Cinema Law (2022) and the national strategy for cultural industry development through 2030—have created a more supportive regulatory framework. However, the absence of effective financial mechanisms, such as national film funds or substantial tax incentives, remains a significant constraint for more ambitious or experimental projects.

The financing structure of Vietnam’s film industry in H2 2025 remains largely unchanged, though it has become more cautious following a period of rapid expansion. Film production continues to rely primarily on private capital, with common models including single-investor funding, multi-party co-investment, and partnerships between production companies and distributors.

A defining feature of the financing landscape is the central role of high-profile filmmakers. Established directors and producers often act as financial hubs, leveraging their personal brand to secure funding or directly invest in their own projects. While this model facilitates the rapid development of commercially viable films, it also reinforces market concentration and limits opportunities for emerging voices.

In terms of “hard money”, Vietnam still lacks dedicated film investment funds or consistent participation from venture capital in the content sector. Most private investment remains short-term and box office-driven, focusing on rapid returns rather than long-term content development.

“Soft money” mechanisms, including state funding and incentives, remain underdeveloped. Despite policy improvements, Vietnam has yet to establish a robust national film fund or competitive tax rebate system capable of attracting large-scale international productions.

International co-productions have emerged as an alternative financing strategy, particularly through partnerships with South Korea and other Asian countries. These projects typically combine financial resources, production expertise, and distribution networks. However, as evidenced in H2 2025, such collaborations remain limited in number and inconsistent in outcome.

Overall, Vietnam’s financing ecosystem is dynamic but fragmented, with a clear need for more structured and sustainable funding mechanisms.

Vietnam’s distribution landscape in H2 2025 remains highly concentrated, dominated by a small number of major players, many of whom are vertically integrated with exhibition chains. Companies such as CGV and Lotte continue to hold significant market share, alongside domestic distributors like Galaxy, BHD, and Beta Cinema.

Vertical integration allows these companies to exert considerable control over screening schedules and showtime allocation. Commercially promising films—particularly domestic blockbusters—are able to secure prime slots and high screening volumes, while independent or experimental films face significant barriers to entry.

Domestic films continue to dominate screen allocation, especially during peak seasons. Meanwhile, Hollywood films have lost their once-dominant position, with many mid-tier releases underperforming at the Vietnamese box office.

However, major franchise titles still retain strong appeal. In H2 2025, blockbuster sequels such as Avatar: Fire and Ash and Zootopia 2 achieved significant success, demonstrating that globally recognized brands continue to attract Vietnamese audiences despite broader shifts in viewing preferences.

Asian films, particularly Japanese animation, maintain a stable and reliable presence in the market, contributing to the diversity of foreign film offerings.

While a small number of independent distributors have begun to emerge, their scale remains limited, and they continue to depend heavily on exhibition networks controlled by larger corporations.

Vietnam’s theatrical sector continued to expand in H2 2025, with a gradual increase in the number of screens and multiplexes. Growth has been concentrated primarily in major urban centers, while smaller provinces still face limited access to cinema infrastructure.

The exhibition market remains dominated by major chains such as CGV and Lotte, followed by domestic players including Galaxy, BHD, and Beta. Multiplex cinemas remain the industry standard, with increasing investment in premium formats such as IMAX, 4DX, and VIP theaters, aimed at enhancing the cinematic experience and increasing per-capita revenue.

Average ticket prices have risen slightly, particularly in urban areas and premium formats. At the same time, flexible pricing strategies—such as weekday discounts and student promotions—continue to be used to maintain attendance.

Audience behavior indicates a sustained return to cinemas, particularly for domestic commercial films and major international releases. However, the growing influence of streaming platforms has shifted cinema-going toward a more event-driven experience rather than a routine activity.

A significant limitation remains the lack of dedicated arthouse cinemas, which restricts the theatrical distribution of independent and artistically ambitious films.

Vietnam’s technology and production services sector has continued to develop in H2 2025, with increasing involvement in both domestic and international projects. Companies specializing in VFX, animation, and post-production are gradually reaching international standards.

However, much of this work remains outsourcing-based, with limited original content creation. Vietnam still lacks large-scale production infrastructure such as advanced soundstages or virtual production facilities, which limits its ability to attract major international shoots.

The adoption of emerging technologies, including AI tools for pre-production and post-production processes, is beginning to take shape. Applications include storyboarding, image enhancement, and even experimental uses such as digital actor replacement. However, these developments remain in early stages and continue to raise aesthetic and ethical questions.

Overall, while the sector shows strong potential, further investment in infrastructure and human resources is necessary for Vietnam to become a competitive production hub in the region.

Streaming platforms continued to expand rapidly in Vietnam during H2 2025, becoming an increasingly important pillar alongside theatrical exhibition. Global players such as Netflix, iQIYI, and Apple TV+ maintain strong market presence, while local platforms such as FPT Play, VieON, Galaxy Play, and VTV Go compete through localized content strategies.

Investment in Vietnamese content has increased significantly, creating new opportunities for filmmakers and enabling local productions to reach international audiences. However, for most theatrical films, cinema release remains the primary revenue stream, with OTT serving as a secondary distribution window.

The widespread use of smartphones and high internet penetration continues to drive digital consumption, particularly among younger audiences. While streaming has not replaced theatrical viewing, it has fundamentally reshaped audience behavior and expectations.

Government regulations requiring foreign platforms to comply with local laws and taxation are also influencing the development of the OTT market.

International co-production continued to gain momentum in H2 2025, particularly through collaborations with South Korea and other Asian countries. These partnerships are seen as a strategic pathway for Vietnamese cinema to access larger budgets, advanced production technologies, and international distribution networks.

One of the most notable successes was Leaving Mom, a Vietnam-Korea co-production that achieved both commercial success and strong media attention. The film demonstrated the potential of cross-border collaboration when cultural elements are effectively localized for domestic audiences.

However, not all projects achieved similar outcomes. Other co-productions, including Love Barista, as well as collaborations with Thailand and India, failed to resonate with audiences. These mixed results highlight the challenges of balancing cultural specificity, audience expectations, and market positioning.

Overall, international co-production in Vietnam remains experimental and inconsistent, often driven by opportunity rather than long-term strategy. Nevertheless, the increasing number of such projects indicates a growing level of openness and regional integration.

With more structured policies and stronger creative alignment, co-productions have the potential to become a key driver of sustainable growth for the Vietnamese film industry in the future.

Taken together, the developments of H2 2025 suggest that Vietnam’s film industry is entering a decisive phase—one defined not by growth alone, but by the need for structural maturity. The remarkable rise of domestic box office power has proven that local audiences are not only willing, but eager to support Vietnamese stories when they are told with confidence and cultural specificity. Yet this success also exposes the limits of a system still heavily reliant on a narrow pool of commercial formulas and brand-name filmmakers.

The re-emergence of state-backed productions and the gradual expansion of international co-productions point to a broader ambition: to reposition Vietnamese cinema not merely as a thriving domestic market, but as an active participant in the regional and global film landscape. However, without more coherent policies—particularly in financing, talent development, and infrastructure—these efforts risk remaining fragmented and inconsistent.

At its core, the challenge facing Vietnam’s film industry is no longer about audience growth, but about sustainability and diversity. Can the industry move beyond a high-risk, hit-driven model toward a more balanced ecosystem that nurtures both commercial success and artistic innovation? Can it build the institutional frameworks needed to support long-term development, rather than short-term gains?

As 2025 comes to a close, Vietnam’s cinema stands at a crossroads. Its commercial vitality is undeniable, but its future will depend on whether that vitality can be translated into a more resilient, inclusive, and creatively ambitious film culture.